A value stream is all the steps (both value added and non-value added) in a process that the customer is willing to pay for in order to bring a product or service through the main flows essential to producing that product or service.
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The entire series of processes that are used by a company to provide value to the customer. The Value Stream for each product or service offered by the company should be identified.
The Value Stream is depicted through the use of detailed process flow diagrams and charts (Value Stream Map) that will ultimately be used to determine the Value Added components of the Value Stream as well as the Non-Value Added components.
The process charts must always depict the total number of steps taken to provide value, as well as the total number of people involved, the total time taken to perform the process step, and all documents used.
Typically, there is a wide disparity between the lead time for the total value stream and the actual value added time. The purpose of the value stream map is to provide visual evidence of the value stream and to use the map as a guide in planning the improvements necessary to reduce the gap between lead time and actual value added time.